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PIsiI NII�III! <br />• Sp � �� n s ed <br />ra <br />• <br />• <br />Water and Wastewater Fee Study Update <br />Work Plan February 2012 <br />Objective(s) <br />The purpose of this study is to assist the City of Lino Lakes in evaluating the financial operations of <br />its Water and Wastewater Utilities to update the necessary level of user fees, area charges, and <br />trunk fees that will provide adequate cash flow to pay for current plant expenditures, anticipated <br />future operating and maintenance expenses, debt service including principal and interest, utility <br />improvements asset replacement, and adequate cash reserves. Rate recommendations will reflect <br />the each Utility's recent cost experience as well as anticipated future costs during the nominal <br />period for which rates are projected. <br />Springsted completed a rate analysis for the City in 2007. This analysis would update that study <br />and make adjustments to rates and fees based on activity since 2007. <br />Task 1 - Review Background Information <br />➢ Internal review of background information: <br />— Review historical financial information, volumetric rates, basic facility charges, <br />contractual charges and other fees and charges that provide sources of revenue for <br />each utility <br />— Review the current allocation of costs to functional cost components and to rates <br />and charges for each utility <br />— Review any current allocations of capital costs to connection and other charges and <br />fees for each utility <br />— Review current and historical billing data for each utility <br />— Review current funding practices, funding sources and policies related to financing <br />capital improvements for each utility <br />— Review and update the City's existing capital improvement plan for each utility <br />identifying the sources of funding for each improvement <br />— Review any existing debt service coverage requirements for both senior and <br />subordinate debt and the impact of adding additional debt to finance new capital <br />improvements for each utility <br />— Review ordinances, policies and practices related to user fees, connection fees and <br />other charges for utility services <br />